Print
(From CU Today) – A new study finds a conflict between what members say they are looking for and where credit union management teams are focused. The study also finds credit union members are receptive to the concept of open banking, but trust remains a large factor in their decisions to bank with a credit union.
According to PYMNTS’ Credit Union Innovation Index, 65% of members said they chose a credit union as their primary because they trusted it, as opposed to 45% of non-CU members who said the same.
In fact, loyalty programs are members’ most loved feature. Nearly half (49.1%) cite loyalty and rewards as the area in which they want to see greater innovation over the next three years, Pymnts.com said.
The same study, though, found loyalty and rewards were only the seventh-most important priority among credit unions themselves, which are instead focusing on open banking options that offer anti-money laundering (AML), data security and instant payment technology.
A majority (62.7%) cited data security and 60.8% noted anti-fraud initiatives as top innovation priorities.
Seem at Odds
“Member and CU priorities might seem at odds on the surface, though 42.4% of members want their CUs to invest more in security and 19.5% want instant payments innovations. Open banking is a solution that can solve security issues and instant payments,” Pymnts.com said.
“The benefits of open banking are many, the most obvious being the speed of payments between FIs. Open banking is typically achieved via APIs that allow third-party developers to create tools based on the specific services and information FIs offer, ensuring that they are compatible with other banks’ procedures,” Pymnts.com explained, adding, “and by many measures, it appears that both CUs and members are on board with open banking.”
The report found that 61% of consumers are willing to allow open access to their financial information in exchange for easier banking, while 77% of U.S. banks plan to invest in open banking initiatives this year.